Thaicom to spend Bt5 bn in 2015
Thaicom will spend Bt5 billion this year, of which Bt3 billion will go to the development of the Thaicom 8 broadcasting satellite.
The rest will be lent long term to its 51-per-cent-owned subsidiary Shenington Investments to pay for a 25-year extension of the telecom concession of Lao Telecommunications Co, which was originally due to expire in 2021, Suphajee Suthumpun, chief executive officer of Thailand’s sole satellite operator, said yesterday.
Shenington holds 49 per cent of Lao Telecom, which operates a telecommunications business in Laos.
Thaicom 8, which cost US$150 million (Bt5.17 billion), is scheduled to be launched in the first quarter of next year and go into operation in the second half of that year. The company will pay about $100 million for this year’s development cost.
Thaicom forecasts revenue growth of 5-10 per cent next year after Thaicom 8 is in orbit. Thaicom 8’s transponders have already been 13 per cent pre-booked and that is expected to reach 50 per cent before the launch. Thaicom 8 targets broadcasters in Asean.
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Thaicom’s board recently approved in principle the loan to Shenington to extend Lao Telecom’s concession to 2046.
The total amount of the loan, including interest, is Bt2.5 billion. The sources of the funds will be financial institutions and borrowings within the group. The loan is in proportion to the company’s shareholding in Shenington.
The granting of the extension will enhance Lao Telecom’s future growth. Shenington will gain recurring income from Lao Telecom’s dividends, which will benefit Thaicom.
Thaicom looks for revenue growth of about 5-7 per cent and profit growth in the double digits this year, despite the slowing economy. Satellites are not vulnerable to the slowing economy since they are part of basic infrastructure.
Thaicom operates three functioning satellites – the IPSTAR broadband satellite, and the Thaicom 6 and Thaicom 7 broadcasting satellites – which carry 766 TV channels, of which 250 are foreign.
The company hopes to see more revenues contributed by its value-added services such as smart office solutions and Wi-Fi on planes.
